What does “no money down” property investing entail?
“No money down” deals are often made to seem very complex and difficult to pull off.
In reality, they’re are very simple and ordinary schemes. There are different variations you can use in different situations. Most “No Money Down” schemes involve manipulating the purchase process in some way. But you can also go the credit card route.
Seven ways to build a property empire with “no money down” property investing
What is seller financing?
Let’s say you want to buy a property for R1 million and have no money of your own at all. You’ve qualified for a 90% bond that leaves you R100,000 short. What do you do?
Well, you can get a personal loan, or get an overdraft from your bank, or you may just borrow the money from your friends or family. It’s easy to see how (in theory) at least) you could borrow the R100,000 from your best friend or your Dad.
Or you can approach the seller for seller financing.
With seller financing in its simplest form, you just borrow R100,000 from the seller. It really is that easy.
In this case, the seller would lend you the R100,000 and you’d repay them over an agreed time, at an agreed rate and an agreed amount per month (or quarter, or week, or whatever). You would repay the seller in exactly the same way you’d repay your friend or your Dad or your personal loan or overdraft, explains realestate.msn.com.
No money down property investing is a huge topic. We’ll explore other no money down property investment strategies in the next few weeks.